STEPS IN THE DECISION PROCESS

One of the most important tasks a manager performs is

decision making. This may be defined as the process of choosing a
course of action (when alternatives are available) to solve a
particular problem. The steps listed below provide a simplified
framework of the ideal decision-making process:

THE DECISION-MAKING PROCESS
Step 1 Step 2
Define problem Define expectation
(What the problem is) (What the result)

Step 3 Step 4
Gather data Develop alternatives
(The related information) (Make the variety solution)

Step 5 Step 6
Evaluate alternatives Choose best alternative
(Analysis these available solutions) (Select the best solution)

The first step, defining the problem, is perhaps the most
difficult step. It involves careful analysis of a situation in order to
state the problem and determine its cause. For example, a factory
may be experiencing low production (the problem) because the
supervisor has failed to schedule the work shifts in the most
efficient manner (the cause).

Defining the expectation in Step 2 involves stating the result
that is expected once the problem has been solved. The expected
result after solving the problem of low production described above
would be to increase the output of the factory.

Next, data are gathered about the problem. This information
can be obtained from a variety of sources: observation, surveys, or
published research. Most businesses rely on computers to process,
summarize, and report data. Having sufficient data that are valid
and reliable is necessary for Step 4.

Here the decision maker develops feasible alternatives, or
potential solutions to the problem. Using the production example,
some alternatives might include the following:
Replacing the current supervisor
Providing the current supervisor with the necessary
information and training to schedule the work shifts
more efficiently
Creating incentives for workers, such as higher pay or
time off, in order to increase production.

In the fifth step, the decision maker evaluates these
alternatives in terms of the expected result of the solution (which is
to increase production) and limitation such as, time and money.
The first alternative, replacing the current supervisor, does not
guarantee increased production, and it would involve training a
new supervisor. The second alternative, providing additional
training for the current supervisor, would be time-consuming and
somewhat expensive but should bring about increased production.
The last alternative, creating worker incentives, may bring about
increased production but would be quite expensive.

Finally, the decision maker compares the alternatives and
chooses the one that has the best potential for providing the desired
results. In the low production example, the decision maker decides
to try providing the current supervisor with additional training
because this alternative should achieve the objective with the
lowest expenditure of time and money.

The decision-making process is followed by:
Implementation of the chosen alternative
(Putting it into action)
Evaluation of that alternative.

If the alternative achieves the desired result, it is then known
as the solution.

Exercise

Problem: The employee in a company A has demanded to
increase salary from $250 to $350. However, the companys
management has rejected the demand. 80% of employee has quit
the job very suddenly in a month.
What shall the management make decision?

Solution:
Step in decision making:







Step 1
Step 2
Step 3
Step 4


Step 5
Step 6
COMPREHENSION
A.
1. The process of choosing a course of action (when alternatives are
available) to solve a particular problem; *because a choice cannot be
made unless there are various alternatives from which to choose.
2. Define problem, define expectation, gather data, develop alternatives,
evaluate alternatives, choose best alternative; (individual response)
3. State the problem and determine its cause
4. To increase the output of the factory
5. From a variety of sources; observations, surveys, or published
research
6. Develops feasible alternatives; *because it is useless to consider
impractical or impossible alternatives
7. In terms of the expected result of the solution and limitation, such as
time and money
8. Because it should achieve the objective with the lowest expenditure
of time and money.
9. Implementation of the chosen alternative and evaluation of that
alternative.
B.
1. T
2. T
3. F Correct: An unfeasible alternative in the problem of
low production would be to replace all the factory workers
4. T
5. F Correct: The alternative selected in Step 6 may solve the
problem

Vocabulary Exercise
A.
1. E
2. F
3. D
4. A
5. G
6. B
7. H
8. C
B. ____________
C. Rely on; reliable; evaluate; validity; limitations;
expenditure; alternatives; guarantee

Text Analysis
1. Defining the problem; in Step 4; alternative; providing the
current supervisor with additional training
2.
a. defining the problem
b. defining the expectation
c. gathering date
d. developing alternatives
e. evaluating alternatives
f. choosing the best alternatives
3.
a. the first step/defining the problem
b. in Step 2/ defining the expectation
c. next/gathering data
d. here/developing feasible alternatives
e. in the fifth step/evaluating alternatives
f. finally/choosing the best alternatives
4.
a. replacing current supervisorincreased production is not
guaranteed/necessary to train a new supervisor
b. providing additional training for the current supervisor
increased production should be achieved /time-consuming
and somewhat expensive
c. creating worker incentivesincreased production maybe
achieved/quite expensive